By Lucy Caulkett-
The Department for Work and Pensions (DWP) has raised how much parents on Universal Credit can claim for childcare – up to £951 a month for one child and £1,630 for two or more children. This is an increase of 47% from the previous limits, which were £646 for one child or £1,108 for two or more children.
The Government is also helping eligible parents cover the costs for the first month of childcare when they enter work or increase their hours.
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Those parents will now receive up to 85% of those childcare costs back before their next month’s bills are due – meaning they should have money to pay one month in advance going forward. Until now, many low-income families struggled with upfront childcare bills, making it harder for them to work.
The UK government is reputed for playing a crucial role in supporting families and ensuring their financial stability. One such initiative is the recent decision to raise Universal Credit payments for working parents.
This move aims to provide numerous benefits for families across the country. By increasing financial assistance through Universal Credit, the government acknowledges the challenges faced by working parents and seeks to alleviate their financial burdens.
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Raising Universal Credit payments for working parents offers a significant boost to their financial stability since juggling the responsibilities of work and parenting can be demanding, often resulting in financial strain. The increased payments can provide families with the much-needed financial support to cover essential expenses, such as housing, utilities, and childcare costs. This stability allows working parents to focus on their careers while ensuring their children’s well-being.
Reduced Poverty and Inequality
The decision to raise Universal Credit payments is a step towards reducing poverty and inequality among working parents. It acknowledges that many families struggle to make ends meet despite being employed. By increasing financial assistance, the government aims to bridge the gap between income and expenditure, preventing families from falling into poverty. This measure promotes a fairer society where all parents have equal opportunities to provide for their children’s needs.
Financial worries can take a toll on the work-life balance of working parents. With increased Universal Credit payments, parents can have more control over their finances, leading to reduced stress and anxiety. This improved balance allows them to dedicate more time and energy to both their professional and personal lives. Consequently, parents can better nurture their relationships, engage in leisure activities, and actively participate in their children’s lives.
The Uk government has also been raising Universal Credit payments for working parents serves as an incentive for employment to encourage individuals to seek and maintain employment, as it becomes a more viable option.
This initiative recognizes the importance of work for personal development and economic growth. When working parents are adequately supported, they are more motivated to contribute positively to the workforce, ultimately benefiting the economy as a whole.
Discussing the rise in payments, a spokesperson from the Department Of Work and Pensions told The Eye Of Media.Com:
”Children are the future of any society, and their well-being is of utmost importance. The increased Universal Credit payments have a direct positive impact on children’s lives by providing them with better access to essential resources and opportunities.
”Adequate financial support enables parents to invest in their children’s education, health, and extracurricular activities, leading to improved overall well-being and brighter future prospects.
”The government helps alleviate some of the financial burdens and associated stress. Reduced financial worries contribute to improved mental well-being, allowing parents to focus on their families and personal growth. This initiative also indirectly benefits employers by reducing absenteeism and enhancing productivity among their workforce”.
Mel Stride, Secretary of State for Work and Pensions, said:
“We are supporting thousands of parents to return to work, progress their careers and boost their finances while making sure they have affordable childcare.
“By removing one of the biggest barriers to work for parents in Britain we are giving families the chance of a better future while doubling down on this government’s pledge to grow the economy and bear down on inflation.”
With over two million parents on Universal Credit, the Government is targeting ways to improve support and empower them to do their bit and help fill the million vacancies across the country.
As part of the biggest changes to childcare ever made, the Government is also seeking to boost the early years workforce, and is now consulting on ways to encourage more people to consider childcare as a career, like through new apprenticeship routes.
In addition, the hourly rates paid to providers to deliver the Government’s free childcare offer for two-year-olds will increase by 30% in September, up to an average rate of £8.
While from April 2024 there will be 15 free hours childcare available for working parents of two-year-olds, followed by 15 free hours from nine months in September 2024, and finally 30 free hours from nine months to the start of school from September 2025.
Minister for Children, Families and Wellbeing Claire Coutinho said:
“We are delivering the largest ever expansion of free early education in England to make sure parents are able to access the high-quality, affordable childcare that they need.
“A working parent using 30 hours of childcare a week could save an average of £6,500 a year thanks to the new free hours offer alone.
“Parents might be surprised just how much support they’re eligible for – check all the details on our dedicated Childcare Choices website.”
Helping parents return to work is part of this Government’s wider drive to tackle economic inactivity and get Britain working, directly linked to one of the Prime Minister’s key priorities to grow the economy. The Government has invested £3.5 billion to get people into work, including these childcare measures and specific schemes targeted at supporting jobseekers on Universal Credit into work and towards prosperity.
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